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In reply to the discussion: Ultra Low Interest Rates A Threat To Social Security [View all]Wounded Bear
(58,362 posts)27. In general, I agree....
but the Fed has failed us the last few years, continually driving interest rates down in opposition to non-existing inflation threats. Meanwhile, the general economy has seen inflation in prices and costs, but without any concomitant increase in earnings to offset it. Depressing rates does depress growth if they go too far, which they have.
One big problem we have now is that once you hit effective zero on rates, there's not much you can do to affect things. I guess that's what the free-market zealots want. In the big picture that is dangerous, as 2008 shows. Easing rates back up to the 3% range would probably make life better for everybody.
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From previous reports. Just because they're not online does not mean they do not exist.
jeff47
Mar 2016
#41
Well, yeah Congress can always amend the SS Act. But until they do that, it's pretty much a market
Hoyt
Mar 2016
#28
I think they have driven rates down in the hopes of spurring job creating business.
Hoyt
Mar 2016
#29
And it hasn't worked well because of other issues that only Congress, not the Fed, can address.
strategery blunder
Mar 2016
#47
Agreed. Allowing giant banks to borrow money for free from the taxpayers without no requirement
GoneFishin
Mar 2016
#51